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Understanding Education Tax? | iCalculator

What is 'Education Tax '?

Education Tax Overview

Introduced on 1st July 1983, 'Education Tax' is a compulsory wage based contribution system, the proceeds of which are used to assist the Ministry of Education with needed finance. Everyone within the workforce pays Education Tax, including employers, employees and the self-employed.

When is it paid?

The Education Tax is deducted from your Statutory Pay monthly, paid to the 'Collectorate' on the 14th day of the following month. (e.g. if you earn money in January, you must will pay Education Tax by 14th February). It is an offence for an employer not to pay this tax and may result in an appearance at a Resident Magistrate's Court for failure to pay. This can prove extremely expensive as employers are also liable to pay a fine and interest of 40% per annum on all outstanding Education tax deductions, as well as the actual Tax charge.

The calculation for interest is; Education Tax x 40% x number of days outstanding รท 365

Education Tax Exemptions

Some employers do not have to pay the Education Tax:

  1. A company registered under the Companies Act, where the Government holds at least 51% of the ordinary share
  2. Kingston and St. Andrew Corporation
  3. Parish Council
  4. Statutory body or authority
  5. University of The West Indies

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